Vietnam’s economy grows 5.73 pct in first half

Vietnam’s gross domestic product (GDP) grew by an estimated 5.73 percent in the first half of this year (Source: VNA)

Hanoi (VNA) – Vietnam’s gross
domestic product (GDP) grew by an estimated 5.73 percent in the first half of this
year, Director of the General Statistics Office (GSO) told a press conference
in Hanoi on June 29.

The first-quarter growth hit 5.15 percent
while the second quarter’s was 6.17 percent thanks to the government’s efforts
to improve business climate.

Specifically, the agro-forestry-fisheries
sector expanded 2.65 percent in the six-month period. Industry and construction
grew 5.81 percent while services went up by a five year record 6.85 percent.

Ha Quang Tuyen, head of the GSO’s National Account
Department, said 17 out of 21 industries recorded higher growth rate in Q2 on a
quarterly basis, notably manufacturing and engineering (10.5 percent),
contributing 1.79 percentage point to the economic growth.

Director of the GSO’s Price Statistics
Department Vu Thi Thu Thuy said the average consumer price index (CPI)
increased by 4.15 percent for the six-month period, lower than the 4.96 percent
rise recorded in the first quarter, which showed inflation is on a decreasing
trend to a reasonable level, meeting the Government’s target

Meanwhile, exports and imports went up 18.9
percent and 24.1 percent, respectively.

From early this year till June 20, the
country attracted 1,183 new foreign-invested projects worth 11.84 billion USD,
up 56.3 percent in project number and 57.9 percent in capital year-on-year.

Also during the period, 61,276 new firms were
established with a total registered capital of 596 trillion VND (25.91 billion
USD), marking respective increases of 12.4 percent and 39.4 percent in firm
number and capital.

However, GSO experts stressed that the
growth rate barely met the target, the disbursement of investment capital was
slow and agricultural production was still under the negative effects of the
saline intrusion in the previous year.

There was neither any breakthrough change
in the growth model nor major change in the economic structure. Trade deficit
has returned, standing at an estimated 2.7 billion USD, equivalent to the same
period last year.

GSO Director General Lam said in order to
achieve a 6.7 percent growth this year, a growth of 7.4 percent should be
achieved in the latter half of the year, which is a hard task.

According to the head of the National Account
Department, there are still opportunities for the country to meet the set goal.
He said the business sector is a major resource for growth. Besides, the
disbursement of social investment, with more than 60 percent left for the
second half of the year, will help accelerate economic growth. In recent years,
social investment usually accounts for more than 50 percent of GDP this year.

Tuyen added that the
manufacturing-processing sector is expected to record high growth, with several
large-scale steel projects are slated to become operational in the last months
of the year.-VNA